Wednesday, July 26, 2017

Equity Mutual funds are normally
classified into different types of category. However it can be simply
divided in 2 types i.e. Growth and Value. The characteristic of both
Growth and value equity fund differs from each other. So it is important
to understand their characteristic in order to build an investment
strategy which will suit the investment objective of an individual.

Below is the detailed description of Growth and Value equity mutual fund which may help an investor to build a strong portfolio.

Growth Fund – It
includes stocks of the companies which are expected to grow at a faster
rate as compared to the overall market. Growth funds offer higher
potential capital appreciation but usually at above-average risk. High
risk-reward makes this fund an ideal investment tool for those not
retiring any time soon. It is advisable that an individual should have a
high risk appetite and should hold their investment for 5-7 years in
order to gain good return from their investment. Growth fund invests
their corpus in both large and mid-cap fund.

Value Fund – It
includes stocks of those companies which are fundamentally undervalued.
Those who have a low risk appetite may invest their corpus in value fund
as the risk exposure is quite less when compared to growth equity
funds. Also it provides higher dividends and capital appreciation to its
investor.

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I am passionate about Elliott wave and practicing it for many years. I use Advanced concepts of Technical analysis, Elliott wave and Neo wave to derive the future probable path markets can follow. I produce daily research reports on Equity, Commodity and Forex markets using these techniques. For more information on subscription to these research please write at ashishkyal@gmail.com